CBN Further Cut Rate for 364-day Bills to 6.99% Despite Huge Auctioned Volume…

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In the just concluded week, CBN sold T-bills worth N235.05 billion to mop up matured bills worth N150.05 billion.

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In line with our expectations, the 364-day bill was issued at lower rate despite the larger amount of bills sold.

Hence, stop rate for 364-day bill
moderated by 26bps to 6.99% from (7.25%
which was also a drop from 7.50%).

However, stop rates for 91-Day and 182-Day bills were left unchanged at 2.5% and 3.5% respectively.

Also, CBN sold OMO bills worth N19 billion to partly mop up liquidity amid N93 billion worth of maturing bills.

Given the net inflow from OMO space, NIBOR fell for most tenor buckets tracked:, 1 month, 3 months and months NIBOR rose to 9.65% (from 11.47%), 10.79% (from 12.60%) and 11.40% (from 13.65%) respectively.

Nevertheless, we saw liquidty pressure at the shorter end of the curve as overnight rate shot up to 26.50% (from 17.43%).

Despite the decline in rate for 364- day t-bills, NITTY trended upward for most maturities tracked – NITTY for 1 month, 6 months and 12 months increased to 3.22% (from 3.16%), 5.05% (from 5.02%), 7.61% (from 7.60%) respectively. However, NITTY for 3 months fell to 3.89% (from 3.92%).

In the new week, we expect NIBOR to moderate for most maturities tracked as the N103.80 billion worth of OMO bills bolster financial system liquidity ease.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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